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2015 (12) TMI 656 - CESTAT AHMEDABAD

2015 (12) TMI 656 - CESTAT AHMEDABAD - 2016 (335) E.L.T. 188 (Tri. - Ahmd.) - Demand of interest on duty paid on DTA clearances of warehoused goods - 100% EOU - Held that:- Impugned goods were imported duty free and warehoused as per the warehouse provisions. The warehousing provisions specify that the same can be warehoused till expiry of three years as per Section 61 (i) (a) of the Customs Act, 1962. The duty liability on the goods will arise only after expiry of such time limit, or when the g .....

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Therefore, there is no occasion to demand interest from the appellant as there is no delay in payment of the duty. Interest can be levied only if there is delay in payment of duty, which is not the case herein. Therefore, we find no reason to demand interest from the appellant. Consequently, there is also no reason for imposition of penalty, as the appellant has not violated any of the provisions nor delayed the payment of duty. - Impugned order is set aside - Decided in favour of assessee. - Ap .....

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interest and imposed penalty. 2. Heard both sides. Learned Counsel for the appellant submits that they are 100% EOU and had imported the impugned goods duty free and warehoused the same in their warehouse premises. The goods namely, pharmaceutical goods have self-life, and since the same could not be utilised immediately because of change in the market conditions, they had sought permission of the Customs authority for clearing the goods to Domestic Tariff Area on payment of duty in accordance .....

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so imposed penalty, on the ground that interest was not paid. Learned Counsel submits that the goods were properly warehoused and there is no duty liability on the goods as long as the goods are warehoused. The goods become liable for duty only on expiry of warehousing period, or on the same being cleared to DTA from the warehouse. Therefore, their contention is that the interest will be leviable only when the duty becomes leviable. She relied upon the provisions of Para 6.15 (a) (ii) of the For .....

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rehouse provisions. The warehousing provisions specify that the same can be warehoused till expiry of three years as per Section 61 (i) (a) of the Customs Act, 1962. The duty liability on the goods will arise only after expiry of such time limit, or when the goods are cleared from the warehouse before that time limit. In the instant case, the appellants had imported the goods during the period June 2010 to March 2011 and they had cleared the goods on 13.09.2011. Therefore, clearances of the good .....

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